Social protection situation

Despite progress in recent years, Indonesia’s social protection (SP) system is still fragmented with many different schemes and institutions. Social assistance programmes have benefitted from increased budgets since a reduction in energy subsidies in 2015. The largest conditional cash transfer, PHK, reached 10 million families in 2018, up from 3.5 million in 2016. Social security covers the full range of pensions (old-age, disability, and survivors) and work injury, but effective coverage is low, and informal economy workers only have access to work injury and pensions from the provident fund on a voluntary basis.

A national health insurance scheme was launched in 2014, combining contributory and non-contributory elements (with 83% coverage in May 2019). A contentious omnibus bill was passed in October 2020, however the inclusion of unemployment insurance based on ILO principles was a positive step for SP, made possible thanks to the support of the ILO in the conception and design phase.

COVID-19

Social protection measures to respond to the economic and social effects of COVID-19 included injecting additional financial resources into the health sector and providing free medical treatment to all regardless of their registration in the national health insurance scheme. The benefit level and coverage of the PHK, Indonesia's largest conditional cash transfer, was also increased, reaching 15% of all households. The same was done for the food voucher programme, Sembako.

COVID-19 was a wake-up call on the need for a holistic, shock-responsive social protection system, and the urgency to implement an effective unemployment protection system. The ILO is assisting the government on this latter point, with the support of Fast Retailing, parent company of UNIQLO.

Government priorities

• Improve coordination and coherence between programmes and the institutions that implement them.
• Address gaps in social assistance and social insurance provision to achieve comprehensive coverage across the lifecycle.

Expanding contributory pensions is a top priority, through enabling access for workers in the informal economy. Introducing maternity and sickness benefits, currently employer-liability programmes, is also high on the agenda, after the unemployment protection scheme has been implemented. All of these priorities reflect the demands of a growing middle class in Indonesia, estimated at 120 million in 2020.

• Building Social Protection Floors for All - Phase II
  13.12.2021 - 31.12.2025 USD 5,942,155 Belgium , Multi Donor , Luxembourg , Germany
• Promoting and building social protection in Asia (4th phase)
  15.03.2021 - 28.02.2024 USD 2,756,659 Japan
• Unemployment Protection in Indonesia - Quality Assistance for Workers Affected by Labour Adjustments
  01.08.2019 - 30.09.2022 USD 1,851,480 Private Sector Initiative
  Display expected outcomes
  • Outcome 02: Re-skilling training and employment placement services are strengthened to assist workers, especially women retrenched from the TGF sectors
  • Outcome 03: National discussion on protection against unemployment is enriched by knowledge-sharing
  • Outcome 01: National capacity and knowledge improved towards the establishment of EI system

Over the course of the first phase of its Global Flagship Programme on Building Social Protection Floors for All (2016-2020), the ILO has:

• 2017-18: Facilitated the participation of trade unions and civil society organisations (CSOs) to consolidate inputs during the development of a new Ministerial Decree on Social Security for Migrant Workers.
• 2018: Supported the Government in undertaking awareness-raising campaigns aiming at the extension of coverage to informal workers, non-wage earners and marginalised groups.
• 2018-2020: Supported the conception and design of an unemployment insurance scheme, through labour market analysis, legal reviews, facilitating the participation of tripartite partners, and conducting acturial assessments of different scheme options.

• The Government issued a regulation on the Implementation of (un)Employment Insurance
  IDN103 28.02.2021
• The Government adopted the Law on job creation which includes provisions on an (un)employment insurance
  IDN103 31.10.2020
  • Number of persons entitled to social protection by law : 10,000,000
• COVID-19 response programmes have been launched
  IDN103 27.08.2020
  • Number of persons effectively covered(related SDG indicator 1.3.1) : 15,000,000
• Awareness raising campaigns targeted informal workers and non-wage earners
  IDN103 31.12.2019
• Ministerial Decree No.123/2018 on Social Security for Migrant Workers implemented the law on the Protection of Indonesian Migrant Workers
  IDN103 31.12.2018
• Consultations with social partners on employment insurance were organised
  IDN103 31.12.2018
• BJPS Employment piloted social security agents and a mobile registration system.
  IDN103 31.01.2018
• Tripartite representatives endorsed the conclusions of an actuarial review on the pension scheme in April 2017, and agreed on the way forward for implementing some of the recommendations.
  IDN104 01.04.2017
  • Number of persons with a better access to social protection (single registry, online application, one stop srvice) : 9,000,000
• The assessment of the social protection situation in Indonesia
  IDN103 31.12.2015
• The National Medium-term Development Plan (RPJMN) targets a substantial increase in the participation of informal economy workers, (majority of Indonesian workers) who so far have limited protection.
  IDN103 31.12.2015
• Extension of the social security coverage
  IDN103 31.12.2015
• The Social Protection Assessment Based National Dialogue Towards a nationally defined social protection floor (ABND) Report was launched and endorsed by BAPPENAS (Ministry of Planning and Development) on 6 December 2012.
  IDN103 31.12.2013
• The government set up national agency for the placement and protection of migrant workers.
  IDN103 31.12.2009
• Generated social security statistics for inquiry on social security
  IDN103 31.12.2009
• Indonesian Trade Union Federation (KSPI) delivered a regular training programme on OSH
  IDN103 31.12.2009

• US$300,000: Support the improvement of social security legislation for migrant workers from and to Indonesia.
• US$1.2 million:Strengthen the implementation & administration of the work injury scheme and linkages with occupational safety and health policies.
• US$800,000: Build the capacities of relevant social security institutions to implement and monitor the national social health insurance scheme and support expansion strategies and actuarial valuation.

• BRIN-BP JAMSOSTEK FGD on Indonesia labour condition 2023
  06.12.2022
• Technical meeting with Ministry of Manpower on pension reform and employment insurance
  06.12.2022
• Regional training workshop on employment injury insurance and employment insurance
  06.12.2022
• Technical meeting with Fiscal Policy Agency (BKF) on pension reform
  18.11.2022
• Technical meeting with National Social Security Council (DJSN) on pension reform
  18.11.2022
• Technical meeting: Presentation of report on literature review on income security of older persons in Indonesia
  16.11.2022

See all

• Social Protection Floor Assessment in Indonesia
  27.05.2011
• The Launch of the Report "Social Protection Assessment Based National Dialogue: Towards a Nationally Defined Social Protection Floor in Indonesia"
  07.12.2012
• Developments of the Social Security System in Indonesia: Toward a Universal Health Care and extended Employment Injury, Old age and death benefits
  Private

  28.11.2014
• ILO-Fast Retailing Project for Unemployment Protection in Indonesia: Quality Assistance for Workers Affected by Labour Adjustment (UNIQLO)
  07.02.2020
• ILO-Japan project for promoting and building social protection in Asia (Indonesia - 4th phase)
  07.09.2021
• Protecting Garment Sector Workers: Occupational Safety and Health and Income Support in Response to the COVID-19 Pandemic
  28.01.2022